Beschreibung:
In developing countries widespread air pollution poses a major threat to public health calling for effective environmental regulation. This paper adds to a small literature on the health impact of different environmental regulations. Using data from eight waves of China Health and Nutrition Survey (1993-2015), we employ a difference-in-differences model to investigate the health impact of two policies combatting SO 2 air pollution: the command-controlled environmental regulation represented by the Two Control Zones (TCZ) and the market-oriented environmental regulation represented by the SO 2 Emissions Trading Scheme (ETS). Main findings are that the TCZ policy reduces SO 2 emission intensity, resulting in a 39% reduction in the 4-week prevalence of air pollution-related diseases. In contrast, the ETS had no positive health effects, likely due to imperfect market mechanisms and environmental policy uncertainties. The health impact of the TCZ is most pronounced for respiratory illnesses and is increasing in the length of the period the policy has been implemented. The positive health impact is stronger for individuals who have been more exposed to pollution and for less educated and lower income workers. The regions with higher SO 2 emission intensity, such as the Eastern region and the urban areas (in all regions), benefitted more from the environmental regulation